M&A Activity -- Expect a Surge in Mergers

The acquisition of the Sheridan Group by two private equity groups and the recently announced transaction to acquire and privatize publicly traded Workflow Management by Perseus and The Renaissance Group are examples of more to come.

Resumption of Consolidator M&A Activity Is More Defined

Consolidators in the 1990s, like Consolidated Graphics, Mail-Well, Schawk, Quebecor World and Taylor Corp., have expressed a more guarded and defined willingness to resume their external growth by acquiring desirable targets in specific geographies. These deals will be aimed at strengthening existing plants through "tuck-in" acquisitions, increasing penetration into desirable locales, building market share in desirable specialties and building national account capabilities. It could also result in "trades" among these large companies with multi-plant holdings. These trades will enable the consolidators to beef up market share in their present markets by trading away plants in markets where they have a smaller, unprofitable presence.